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Limited Battery Supply Forces GM To Cut Hummer EV Production To Build More Cadillac Lyriqs

GM wants to become the leading EV maker in the U.S., but its limited Ultium cells supply is holding it back so far. Interesting data shows that the uber-popular GMC Hummer EV production was throttled to allow the building of more Cadillac Lyriq electric crossovers.
Limited battery supply forces GM to cut Hummer EV production to build more Cadillac Lyriqs 6 photos
GMC Hummer EV PickupGMC Hummer EV PickupGMC Hummer EV PickupCadillac LyriqCadillac Lyriq
Despite ambitious EV plans, GM still needs to make painful decisions in the face of supply shortages. Like the chip shortage, when carmakers prioritized higher grossing models in the lineup, the Li-ion cells limited supply dictates what models roll off the production lines. Faced with a limited Ultium cell production, General Motors had to choose between the GMC Hummer EV and the Cadillac Lyriq. Interestingly, the monster electric pickup truck got the short stick.

Both EVs use GM’s Ultium technology, which includes the Ultium li-ion cells and the Ultium drive units. GMC Hummer production started in October 2021 but was slow to ramp. This has led to uncontrollable price hikes and questionable sales practices. Despite its steep price, people were willing to pay more than twice to get one. On the other hand, it is almost certain that GM is losing money with GMC Hummer EV production.

A new development seems to confirm this idea. According to GM Authority, the GMC Hummer production was slowly rising to a maximum of 400 units in May 2022. From there, it was severely slashed to only 50 units in July. At the same time, Cadillac Lyriq production started in March. Still, the premium electric crossover did not get significant production figures until - guess what? - July.

It appears that GM chose to build more Cadillacs instead of GM Hummer EVs. This leads us to believe that GM makes more money selling the Cadillac Lyriq (although it has a smaller price) than it makes on the GMC Hummer EV. That makes using the limited-supply Ultium cells to build Cadillacs a no-brainer. Fortunately, GM has recently begun production of Ultium cells at a new factory in Warren, Ohio, which should alleviate the battery scarcity.

 
 
 
 
 

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